Did Jelfa Pharmaceutical Company abuse its market position when setting the price of their medicine? The anti-monopoly proceedings initiated by the President of UOKiK will clarify that

Since January 2007, Jelfa has been the only manufacturer and supplier of Cocarboxylasum on the Polish market. The medicine is used to treat deficiency of vitamin B1. Jelfa’s only competitior, Polpharma Pharmaceutical Works, ceased to produce the drug in 2006 and, at the beginning of 2007, it also ceased the sales of this substance. The objective of the anti-monopoly proceedings initiated by the President of UOKiK is to check whether Jelfa did not abuse its market position by setting an excessive price.

The information collected by UOKiK shows that for a few years (2001 - 2006) Jelfa would sell the medicine to wholesalers at PLN 7 a package. In the same period of time, Polpharma sold Cocarboxylasum for less. A month after Polpharma abandoned the production and sales of the product, Jelfa quadrupled its price. The Office will check whether the company did not abuse its market position when setting the price.

Pursuant to the Act on competition and consumer protection, it is not illegal to have a dominant position - only its abuse is forbidden. The abuse may consist in, for example, direct imposing of unfair prices (excessively high). The anti-monopoly proceedings concerning competition restricting practices should end no later than within 5 months of the date of their initiation.

If the charges are confirmed, the President of UOKiK may, by way of decision, order the company to abandon the challenged practice, as well as impose a fine up to 10 percent of the company’s last year's revenue.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 314
faks (+48 22) 826 11 86
E-mail: mcieloch@uokik.gov.pl

Wrocław Branch Office
ul. Walońska 3-5, 50-413 Wrocław
Tel. (+48 71) 344 65 87
faks (+48 71) 340 59 22
E-mail: wroclaw@uokik.gov.pl